PLAINS GP HOLDINGS LP Q3 FY2024 earnings call

• Plains delivered a solid operational quarter with adjusted EBITDA expected to be towards the top end of the 2024 range of $2.725 billion to $2.775 billion.
• Permian volume growth remains on track with 200,000 to 300,000 barrels a day range for 2024.
• NGL business on track to complete Fort Saskatchewan Fractionation expansion in first half of 2025.
• Acquired Fivestones Permian gathering system from Rattler Midstream.
• Settled 2 lawsuits related to 2015 oil spill in California, booked $120M charge, resolving material Line 901 claims.
• Moody's upgraded to Baa2 with stable outlook, achieving mid BBB rating at all 3 credit rating agencies.
• Focus on efficient growth strategy, including bolt-on acquisitions and capital allocation towards distributions.

The crude oil segment saw higher Permian volumes contributing to adjusted EBITDA net to PAA of $659 million in the third quarter. The NGL business is on track to complete the Fort Saskatchewan Fractionation expansion project in the first half of 2025. Absolute terms: Crude oil segment had $659M adjusted EBITDA net in Q3; NGL business has Fort Saskatchewan expansion project on track. Revenue contribution % not explicitly stated in the transcript.

• 2024 adjusted EBITDA expected towards top end of $2.725B - $2.775B range.
• 2024 adjusted free cash flow ~$1.45B, with ~$1.15B allocated to distributions.
• Capital allocation includes ~$140M for bolt-on acquisitions.
• Moody's upgrade to Baa2 with stable outlook, achieving mid BBB rating at all 3 credit rating agencies.

• Remaining contingencies related to 2015 oil spill in California, although settlements resolved material claims but $225M insurance claim remains.
• Geopolitical unrest, potential OPEC supply changes, uncertainty around China and broader economic activity.

Q: How much of Permian gathering volumes growth is organic vs acquisitions?

A: Substantial portion is organic growth from completions across the system, with modest growth from acquisitions year-over-year.

Q: Thoughts on leverage below target range and future capital deployment?

A: Don't intend to lower leverage range, focused on maximizing free cash flow, optimizing assets, bolt-on acquisitions, and returning cash to shareholders.

Q: Early discussions on 2025 volumes and valuation?

A: 2025 volumes expected within 200,000 - 300,000 bbl/day range, midstream assets highly valued, will be disciplined on transactions.

Q: Thoughts on water business and Canadian platform bolt-ons?

A: Will look at water business if it fits synergy and business profile; Canadian platform focus on Fort Saskatchewan expansion and optimizing core areas, open to bolt-ons that fit synergies.

Q: Impact of TMX start-up on flows and NGL business?

A: TMX start-up reduced heavy exports, improved basin flows for light barrels, and NGL business sees better recoveries off fracs.

Q: Details on Fivestones gathering system acquisition?

A: Asset already connected, integrated barrels into system, similar to other bolt-ons done on smaller scale.